Research ReportExtractive Industry

Mining PNBP Management Reform

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The verification and reconciliation process is increasingly complicated due to insufficient information at the point of payment and data management of PNBP payers. This also only focuses on 'obtaining' and sharing the proceeds of mining PNBP.

The share of state revenue from the natural resources sector has increased significantly. However, the potential of this mining business is still high and has not been optimally absorbed.

Indonesia is the world's largest exporter of thermal coal for use in power plants. China and India have the highest market share for coal from Indonesia, worth around 2 billion US dollars every month. It is not surprising that coal has become one of Indonesia's main export commodities, with a portion of 12 percent of export value in 2012. The surge in commodity prices and production has driven a significant increase in the nominal contribution of the natural resources sector to growth, exports and investment.